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28 Aug 2014
EUR/USD: Prospects remain unsteady - OCBC
FXStreet (Bali) - Emmanuel Ng, FX Strategist at OCBC Bank, notes that EUR/USD prospects remain quite unsteady.
Key Quotes
"EUR prospects we think may remain quite unsteady (note potential downgrade to Italian growth forecasts) in the near term, especially given that the EUR-CHF has continued to slide in recent weeks while the 10y bund hit a 0.896% on Wednesday. Note that the pair managed to regain its footing somewhat on Thursday on the back of wire reports indicating no further initiatives from the ECB next week but we expect sentiment to remain fragile in the intervening period with key event risks expected from German CPI numbers today and EZ CPI reading tomorrow. In the interim, we stay the course with a heavy EUR-USD stance with the next visible support expected at 1.3150 if the foothold at 1.3200 is lost."
Key Quotes
"EUR prospects we think may remain quite unsteady (note potential downgrade to Italian growth forecasts) in the near term, especially given that the EUR-CHF has continued to slide in recent weeks while the 10y bund hit a 0.896% on Wednesday. Note that the pair managed to regain its footing somewhat on Thursday on the back of wire reports indicating no further initiatives from the ECB next week but we expect sentiment to remain fragile in the intervening period with key event risks expected from German CPI numbers today and EZ CPI reading tomorrow. In the interim, we stay the course with a heavy EUR-USD stance with the next visible support expected at 1.3150 if the foothold at 1.3200 is lost."